Project meeting

Google bite back in their battle with Microsoft

Google has fought back in their running battle with Microsoft after it was announced that the companies had endured differing fortunes in the latest financial quarters.

Microsoft had recently received a boost in their duel with Google when it was revealed that their search engine, Bing, had eaten into their competitor’s share of the market.

This article highlighted how Google’s thinning-out process had left them in danger of neglecting their core product – resulting in Microsoft’s Bing making a dent in Google’s search engine domination.

However, additions to the respective companies have had stark contrasts in their financial return.

Microsoft suffered their first quarterly loss in the 32-year history of the business between April and June of this year. The figures show  that the company reported a loss of $492m – compared to a profit of $5.9bn a year ago.

The company has blamed their disappointing dip on their purchase of Aquantive- an advertising agency – which cost them $6.3bn back in 2007. Aquantive is Microsoft’s second biggest asset behind the 2011 acquisition of voice communication service Skype.

On the other hand, Google have been lifted with the news that their purchase of Motorola Mobility Holdings earlier this year has helped to guide them to an 11 per cent rise in profits from the April to June quarter of 2011.

Google received a net income of $2.79bn which was accelerated from the $2.51bn total from the same time 12 months ago.

Motorola, who primarily function to produce mobile phones, are also apparently attributable for Google’s 35 per cent surge in overall revenue.

Microsoft will now be banking that their soon-to-be released Windows 8 operating system – the area of the company where their expertise is strongest – will aid them to claw back some of the lost ground in the second quarter of 2012. Microsoft claims that Windows 8 is the “most important” and drastic re-design of their operating system in more than 10 years.

Playing in their own field, Microsoft will hope to wrestle back some of the initiative towards the end of the year as the impact of Windows 8 starts to take place.

Game on.


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